For the second quarter 2010, on a comparable basis, the company reported income from continuing operations of $64m, or $1.40 per diluted share, vs income of $95m, or $2.08 per diluted share, in 2009.
On a GAAP basis, the company reported income from continuing operations of $95m, or $2.06 per diluted share, which includes a gain of $32m on the sale of 51% of Just Fruit in a Bottle, vs income of $89m, or $1.95 per diluted share, in 2009. Net sales were $916m, 4% lower than the prior year period.
“As we expected, we regained profitability in Europe during the second quarter following the unusual weakness of the first quarter,” said Fernando Aguirre, chairman and CEO. “Revitalising Europe is our most important priority and we made solid progress executing a business improvement plan that includes improving pricing, capturing significant cost improvements and increasing distribution, as we leverage the strengths of our branded business. Meanwhile, we’re reaping the rewards of having a diversified portfolio, as our North American salad and banana businesses in the second quarter delivered the same profit level as last year, excluding our increased consumer marketing investment.
“We believe our diversification and profitable growth strategy will result in strong profitability for the full year. However, a sustained, significant reduction in European exchange rates wasn’t factored into our prior expectations. We’re now adjusting our full-year comparable income estimate to $80-90m, assuming these rates remain at lower levels than earlier this year. Even at the lower income estimate, 2010 will be one of our most profitable years in the last decade, despite the weak economic environment.”
Source: Chiquita Brands International
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